{"id":622,"date":"2024-06-27T11:38:23","date_gmt":"2024-06-27T11:38:23","guid":{"rendered":"http:\/\/cherishedmemoriesstudios.com\/?p=622"},"modified":"2024-07-03T16:27:06","modified_gmt":"2024-07-03T16:27:06","slug":"insurance-underwritingand-economic-analysis-art-and-science","status":"publish","type":"post","link":"http:\/\/cherishedmemoriesstudios.com\/index.php\/2024\/06\/27\/insurance-underwritingand-economic-analysis-art-and-science\/","title":{"rendered":"Insurance Underwritingand Economic Analysis: \u201cArt and Science\u201d"},"content":{"rendered":"
\"\"<\/a><\/figure>\n<\/p>\n

By Lewis Nibbelin, Guest Blogger for Triple-I<\/em><\/strong><\/p>\n

Home and auto insurance premium rates have been a topic of considerable public discussion as rising replacement costs and other factors \u2013 from climate-related losses to fraud and legal system abuse \u2013 have driven rates up and, in some states, crimped availability and affordability of coverage.<\/p>\n

It\u2019s important for policyholders and policymakers to understand the role of economic conditions and trends in setting rates.  Jennifer Kyung, Property and Casualty Chief Underwriting Officer at USAA, opens a window into the complex world of underwriting and economics in a recent episode of Triple-I\u2019s All Eyes on Economics<\/a> podcast.<\/p>\n

Kyung told podcast host and Triple-I Chief Economist and Data Scientist Dr. Michel L\u00e9onard<\/a> that economic analysis \u201cis critical to us in underwriting and as we manage our plan.\u201d She described economics as \u201cpart of our muscle memory as underwriters\u201d \u2013 adding that the economic uncertainty of recent years reinforces the need for underwriters to have \u201ca very agile mindset.\u201d<\/p>\n

Underwriting and economics are \u201ca little bit art and science,\u201d representing a balancing act between sophisticated data analytics and creative problem-solving.<\/p>\n

\u201cWhen we think about sales and premiums for homeowners, we may look at things like mortgage rates or new home starts to indicate how the market is going,\u201d Kyung said. \u201cIn auto, we might look at new vehicle sales or auto loan rates. These, in combination, help us look at macro-economic trends and the environment and how that might interplay with our volume projections. That helps us with financial planning, as well as operational planning.\u201d<\/p>\n

\u201cIt\u2019s really critical to keep these on the forefront on an ongoing basis throughout the year,\u201d she said, \u201cso we can adjust as needed\u2026. As our results come in, this gives context to the results.\u201d<\/p>\n

Through continual analyses of external market conditions and the internal quality and growth of your business, Kyung said, underwriters \u201ccan manage and mitigate some of the volatility and risk for our organizations.\u201d<\/p>\n

A tool she recommends for evaluating economic indicators is Triple-I\u2019s replacement cost indices, which track the evolution of replacement costs throughout time across various lines of insurance and geographic regions. These indices enable insurers to synthesize raw economic data and insurance market trends, providing an auxiliary framework to bolster financial and operational planning.<\/p>\n

Kyung said Triple-I offers additional insight into \u201clocal flavor,\u201d or \u201cunderstanding what the emerging issues are\u2026related to the local environment,\u201d through such tools as Issues Briefs<\/a> and Insurance Economics Profilers<\/a>. Recent supply-chain disruptions have accentuated the relationship between local and global economies, revealing the importance of employing local economic analytics to interpretations of broader insurance market patterns.<\/p>\n

Such fusions can help facilitate efficient planning in the face of shifts in the insurance landscape.<\/p>\n

The full interview is available now on Spotify, Audible, and Apple.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Lewis Nibbelin, Guest Blogger for Triple-I Home and auto insurance premium rates have been a topic of considerable public discussion as rising replacement costs and other factors \u2013 from climate-related losses to fraud and legal system abuse \u2013 have driven rates up and, in some states, crimped availability and affordability of coverage. It\u2019s important for policyholders and policymakers to understand the role of economic conditions and trends in setting rates.  Jennifer Kyung, Property and Casualty Chief Underwriting Officer at USAA, opens a window into the complex world of underwriting and economics in a recent episode of Triple-I\u2019s All Eyes on Economics podcast. Kyung told podcast host and Triple-I Chief Economist and Data Scientist Dr. Michel L\u00e9onard that economic analysis \u201cis critical to us in underwriting and as we manage our plan.\u201d She described economics as \u201cpart of our muscle memory as underwriters\u201d \u2013 adding that the economic uncertainty of recent years reinforces the need for underwriters to have \u201ca very agile mindset.\u201d Underwriting and economics are \u201ca little bit art and science,\u201d representing a balancing act between sophisticated data analytics and creative problem-solving. \u201cWhen we think about sales and premiums for homeowners, we may look at things like mortgage rates or new home starts to indicate how the market is going,\u201d Kyung said. \u201cIn auto, we might look at new vehicle sales or auto loan rates. These, in combination, help us look at macro-economic trends and the environment and how that might interplay with our volume projections. That helps us with financial planning, as well as operational planning.\u201d \u201cIt\u2019s really critical to keep these on the forefront on an ongoing basis throughout the year,\u201d she said, \u201cso we can adjust as needed\u2026. As our results come in, this gives context to the results.\u201d Through continual analyses of external market conditions and the internal quality and growth of your business, Kyung said, underwriters \u201ccan manage and mitigate some of the volatility and risk for our organizations.\u201d A tool she recommends for evaluating economic indicators is Triple-I\u2019s replacement cost indices, which track the evolution of replacement costs throughout time across various lines of insurance and geographic regions. These indices enable insurers to synthesize raw economic data and insurance market trends, providing an auxiliary framework to bolster financial and operational planning. Kyung said Triple-I offers additional insight into \u201clocal flavor,\u201d or \u201cunderstanding what the emerging issues are\u2026related to the local environment,\u201d through such tools as Issues Briefs and Insurance Economics Profilers. Recent supply-chain disruptions have accentuated the relationship between local and global economies, revealing the importance of employing local economic analytics to interpretations of broader insurance market patterns. Such fusions can help facilitate efficient planning in the face of shifts in the insurance landscape. The full interview is available now on Spotify, Audible, and Apple.<\/p>\n","protected":false},"author":1,"featured_media":624,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[],"_links":{"self":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/622"}],"collection":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/comments?post=622"}],"version-history":[{"count":2,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/622\/revisions"}],"predecessor-version":[{"id":625,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/622\/revisions\/625"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media\/624"}],"wp:attachment":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media?parent=622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/categories?post=622"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/tags?post=622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}